Considering the limited availability of homes for sale in many parts of the country, it's essential for you, as a prospective buyer, to move quickly. The use of non-publicly available listings is, therefore, crucial. These houses may be for sale, but they aren't publicly advertised since they aren't included in the MLS.

Thus, real estate brokers selling such homes are on their own to actively seek out prospective purchasers. Off-market listing of properties was unusual, but it has gained popularity among homeowners in recent years, creating a secondary market in response to rising demand. To a seller, off-market postings might appear like a strange choice.

Since there is greater interest than available homes, bidding wars are not uncommon in many areas. To what ends would sellers resort to hidden listings, and how can you, the buyer, locate them?

Benefits To The Sellers

Sellers may choose an off-market listing for various reasons, including the ability to gauge interest in their house before going public, a more discreet sale, or the possibility of negotiating a cheaper sales commission with their chosen agent. Some homeowners have hoped that using a "pocket listing" may attract more potential buyers and command a better sales price.

Remember that potential buyers are likelier to try to make lowball offers if the house is advertised and then sits on the market for more than 30 days. A seller is less likely to be undercut if the "days on the market" ticker does not go off.

Profitable Strategies for Consumers

You, the buyer, gain double advantages from this not-yet-publicly-listed property. As a first step, it allows you to see homes that other purchasers aren't aware of. In a competitive real estate market, pocket listings may be your only option.

During typical market conditions, you may be able to negotiate a lower selling price due in part to the lesser commission that the seller is required to pay. Homebuyers' motivations might vary widely. You may be on the lookout for a home to buy and resell for a profit. Off-market listings in desirable areas might be a terrific option for those looking to achieve this.

Coordinated Action Plan 8.0 - MLS Statement

The National Association of Realtors recently passed "MLS Statement 8.0 Clear Cooperation Policy, "1, prohibiting off-market listings as of January 1, 2020, with the country's development mandatory as of May 1, 2020. This policy will require any real estate broker member of a multiple listing to submit their listing to the MLS within one company day of marketing the property to the public.

The Real-World Effects of MLS Statement 8.0

Importantly, MLS Statement 8.0 should not be construed as "law" in the conventional sense. Doug Wagner, a Realtor with RE/MAX Victory + Affiliates in Dayton, Ohio, told the Dayton Daily News that "the National Association of Realtors is a governing association and agents of the association must abide by the new policy."

Wagner added that licensed agents who are not Realtors (not members of the National Association of Realtors) are not bound by the policy. Given that 88% of homebuyers in 2020 hired a real estate agent or broker, it is likely that most residential real estate transactions are covered by Statement 8.0.

Existing Off-Market Listings

In a positive turn of events, off-market listings will continue even after implementing MLS Statement 8.0. The new NAR policy includes provisions for member agents and brokers to keep partial and complete off-market listings. For instance, according to MLS Statement 8.0, vendors can decline participation in MLS IDX or online exposure.

Office-exclusive listings are another alternative for vendors who choose to remain anonymous. A listing agent with an office exclusive can discuss the property with other agents in the office and prospective purchasers directly.

Talk To Real Estate Professionals

Traditional, exclusive, off-market real estate may be found with some research and networking. After settling on a specific area, the next step is to compile a shortlist of the best realtors in the area and get in touch with them to inquire about any unique properties they may have at their office.

The Verdict

In many parts of the country, there is still a severe shortage of available homes for sale. Bidders who lose out on a home need any edge they may get. The use of non-public listings is severely limited but not prohibited by MLS Statement 8.0. Finding your next home through a non-publicly listed property can be worth the time and effort, but only if you do your research and are prepared to take some risks.